A possible repayment of the loans means an immediate reduced cost as well as the coming years, which in turn creates additional room for even more amortization, which further reduces the interest cost, because the interest-on-interest effect works the same in both directions.
Depending on where you are in life determines whether it is beneficial to repay your mortgage. Take my parents, for example, who are low on mortgages. Their mortgage is significantly lower than their equity holdings. My parents are considering paying off their mortgage, which I advise against.
My mother is 75 years old and my father 77 years old. After 60 years, it becomes extremely difficult to be approved for new loans, regardless of how good the ability to repay is. For my parents, paying off the mortgage would make their finances impair instead of improve.
Although it is next to impossible to get my workaholic for a dad to take time off and travel, I still want them to have the opportunity.
Even if it would be to my advantage if they lock up all their money in their properties and don't spend it...
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